Fair Wealth Annual Report 2019

141 Pages·2021·3.617 MB·English

Fair Wealth Project Group
Fair Wealth
Annual Report 2019
Fair Wealth Annual Report 2019
Fair Wealth Project Group
Fair Wealth Annual Report
2019
123
Fair Wealth Project Group
Schoolof Management
FudanUniversity
Shanghai, China
ISBN978-981-15-7788-8 ISBN978-981-15-7789-5 (eBook)
https://doi.org/10.1007/978-981-15-7789-5
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Preface
This book is the 2019 Fair Wealth Annual Report, the second consecutive publi-
cation in the Fair Wealth Annual Report series.
Fair wealth advocates the belief that ‘a man attains his monetary aspirations
through honorable means, uses it with virtue, and passes it with sincerity’. It
recognizes and encourages enterprises to pursue and accumulate wealth, but puts
greateremphasisonthebeliefthatenterprisesshouldabidebytheruleof‘attaining
monetaryaspirationsthroughhonorablemeansandthenusingitwithvirtue’.Atthe
same time, fair wealth also appeals to the society to respect the wealth and wealth
ownerswhohavecompliedwiththeaboverulesandtoletthemenjoytherightsof
wealth inheritance and accumulation with sincerity and without breaking rules.
Enterprises are the main carriers of innovation in contemporary society. The
development and governance quality of enterprises in a region demonstrates its
economic development, innovation ability and prosperity, as well as reflects the
region’s emphasis on business ethics, legal environment and environmental pro-
tection. These two aspects complement each other.
Uptonow,the19thNationalCongressoftheCommunistPartyofChinahasput
forwardtheconceptofhigh-qualityeconomicdevelopmentandtheG20Summitin
2018 included both fair development and sustainable development as the theme
of the conference. In such context, enterprises should think about how to create
socialvaluewhilegeneratingeconomicwealth,whichcoincideswiththeconceptof
fair wealth. The advocacy of fair wealth can urge enterprises to take social
responsibility, enhance their competitiveness and sustainability, and promote the
society to create more fair wealth.
In August 2015, the Institute of Sustainable Innovation and Growth (iSIG) at
SchoolofManagementofFudanUniversityinvitedexperts,scholarsandenterprise
representatives from various fields to deeply discuss ‘fair wealth and corporate
social responsibility’, in the theme of ‘Ideal China’. In September 2016, iSIG
released the inaugural ‘Fair Wealth Ranking’, for the top 50 fair wealth holders
from the Mainland China. In October 2017, iSIG released its first Fair Wealth
EvaluationReportonallA-SharecompanieslistedonthemainboardsofShanghai
Stock Exchange and the Shenzhen Stock Exchange. In August 2018, the Fair
v
vi Preface
Wealth Evaluation Report was released for the second year, and its scope was
extended to companies listed on the Small and Medium Enterprise Board (SME
Board) in Mainland China as well as Chinese companies listed on U.S. stock
exchanges.The2018FairWealthAnnualReportwasofficiallypublishedbyFudan
University Press. The Fair Wealth Evaluation Report was released for the third
consecutiveyearinAugust2019andfairwealthdatacenterwasofficiallylaunched
in November 2019.
This report reviews the development of fair wealth project in 2019. The book
consists of eight chapters in three sections. The first section, introduces the
development of the fair wealth project; the organizations involved in fair wealth
project and the fair wealth project team, including the expert committee, method-
ologycommitteeandexecutiongroupthatcontributetothedevelopmentofthefair
wealth project. As the second section, which includes Chaps. 2–5, reviews the
progress offair wealth project in 2019. To be more specific, Chap. 2 analyzes the
fair wealth annual theme in this year. Chapter 3 presents the fair wealth rating
results in 2019, followed by the analysis on the fair wealth evaluation as well as
case studies on outstanding enterprises in Chap. 4. Chapter 5 introduces other
projectswiththethemeoffairwealth,includingfairwealthinvestment,fairwealth
datacenterandfairwealthevaluationfornon-listedcompanies.Asthethirdsection,
Chap. 6 explains the theories and methods offair wealth evaluation.
Shanghai, China Fair Wealth Project Group
Acknowledgements Theyearof2019markedthefourthyearofthefairwealthproject.Inthis
year, in addition to annually releasing the results of fair wealth evaluation and promoting fair
wealth investment, we officially launched the fair wealth data center. Here we would like to
express our sincere gratitude to all individuals and organizations that have participated in and
supportedthefairwealthproject.
Contents
1 Introduction of Fair Wealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Fair Development Chronicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 Sheshan Symposium (July 2013) . . . . . . . . . . . . . . . . . . . 1
1.1.2 iSIG Enterprise Sustainable Innovation and Growth
Shenzhen Forum (December 2013). . . . . . . . . . . . . . . . . . 1
1.1.3 The Publication of the Bubble Theory
(November 2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.4 The “Fair Development” Symposium (June 2014) . . . . . . . 2
1.1.5 The Formal Introduction of Fair Wealth Theory
(March 2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1.6 Ideal China Forum—Fair Wealth and CSR
(August 2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.7 The Release of the 2016 Fair Wealth Ranking
(September 2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.8 The Publication of Fair Development in China
(December 2012). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.9 The Release of the 2017 Fair Wealth Evaluation
(September 2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.10 Fair Wealth Ranking Renamed to Fair Wealth Persons
of the Year (January 2018). . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.11 FormalOperationoftheFirstPrivateFundBasedonFair
Wealth Evaluation Results (July 2018) . . . . . . . . . . . . . . . 6
1.1.12 TheFirstFairWealthEvaluationforUnlistedEnterprises
(July 2018) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Institutions Involved in Fair Wealth Project . . . . . . . . . . . . . . . . . 7
1.2.1 Institute for Sustainable Innovation and Growth (iSIG)
at School of Management, Fudan University. . . . . . . . . . . 7
1.2.2 Institute on Poverty Research at Peking University . . . . . . 7
1.2.3 Institute for Nation(al) Branding Strategy at East China
Normal University. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
vii
viii Contents
1.2.4 House of Enlightened Needs (H.E.N.). . . . . . . . . . . . . . . . 8
1.3 Fair Wealth Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.1 The Expert Committee of Fair Wealth . . . . . . . . . . . . . . . 8
1.3.2 The Method Committee on Fair Wealth . . . . . . . . . . . . . . 10
1.3.3 Execution Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2 The Annual Theme of Fair Wealth. . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.1 High-Quality Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 Fair Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.3 The Fair Connotation of High-Quality Development. . . . . . . . . . . 13
2.4 High-Quality Development and Fair Wealth. . . . . . . . . . . . . . . . . 14
3 Results of Fair Wealth Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1 List of Honorary Star Enterprises—One-Star Enterprises. . . . . . . . 17
3.2 List of Honorary Star Enterprises—Two-Star Enterprises . . . . . . . 20
3.3 List of Honorary Star Enterprises—Three-Star Enterprises . . . . . . 23
3.4 List of Honorary Star Enterprises—Four-Star Enterprises . . . . . . . 24
3.5 List of Honorary Star Enterprises—Five-Star Enterprises . . . . . . . 24
3.6 List of Enterprises with Negative Issues. . . . . . . . . . . . . . . . . . . . 24
3.7 Data Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4 Analyses of Fair Wealth Evaluation Results . . . . . . . . . . . . . . . . . . . 27
4.1 Analysis of the Results of Fair Wealth Evaluation . . . . . . . . . . . . 27
4.1.1 Summary of the Evaluation and Analysis . . . . . . . . . . . . . 27
4.1.2 Analysis by the Locations of Enterprises. . . . . . . . . . . . . . 29
4.1.3 Analysis by GICS Industry Sectors. . . . . . . . . . . . . . . . . . 35
4.1.4 Analysis by the Ownership of Enterprises. . . . . . . . . . . . . 40
4.1.5 Analysis on the Time of Listing . . . . . . . . . . . . . . . . . . . . 43
4.1.6 Three-Year Review on the Results of Fair Wealth
Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.2 Selected Cases of Excellent Enterprises . . . . . . . . . . . . . . . . . . . . 46
4.2.1 Universal Scientific Industrial (Shanghai) Co., Ltd. . . . . . . 46
4.2.2 Shanghai Fosun Pharmaceutical (Group) Co., Ltd.. . . . . . . 49
4.2.3 BOE Technology Group Co., Ltd. . . . . . . . . . . . . . . . . . . 51
4.2.4 TCL Technology Group Corporation . . . . . . . . . . . . . . . . 53
4.2.5 BYD Company Limited. . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.2.6 Chengdu Kanghong Pharmaceutical Group Co., Ltd. . . . . . 55
4.2.7 Zhengzhou Coal Mining Machinery (Group) Co., Ltd.. . . . 57
4.2.8 Guangzhou Automobile Group Co., Ltd.. . . . . . . . . . . . . . 58
4.2.9 CSSC Offshore & Marine Engineering
(Group) Co., Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
5 Other Projects of Fair Wealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
5.1 Fair Wealth Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
5.1.1 Concept of Fair Wealth Investment. . . . . . . . . . . . . . . . . . 61
Contents ix
5.1.2 Fair Wealth Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.1.3 Applications of Fair Wealth Index . . . . . . . . . . . . . . . . . . 66
5.2 Fair Wealth Data Information Center. . . . . . . . . . . . . . . . . . . . . . 66
5.3 Unlisted Enterprise Fair Wealth Evaluation . . . . . . . . . . . . . . . . . 70
6 Fair Wealth Theory and Methodology . . . . . . . . . . . . . . . . . . . . . . . 73
6.1 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
6.1.1 Enlightened Needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
6.1.2 Fair Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
6.1.3 Core Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
6.1.4 Fair Wealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.1.5 Six Dimensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6.2 Fair Wealth Assessment Framework . . . . . . . . . . . . . . . . . . . . . . 78
6.3 Fair Wealth Evaluation System of Enterprises . . . . . . . . . . . . . . . 78
6.3.1 Fair Wealth Evaluation Framework. . . . . . . . . . . . . . . . . . 79
6.3.2 An Overview of Fair Wealth Evaluation System . . . . . . . . 80
6.3.3 Dimensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
6.3.4 Aspects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
6.3.5 Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
6.3.6 Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.3.7 Fair Wealth Score . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
6.4 Fair Wealth Rating for Enterprises. . . . . . . . . . . . . . . . . . . . . . . . 110
6.4.1 Rating System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.4.2 Eligibility and Screening Criteria for Fair
Wealth Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.4.3 Rating Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
6.5 Fair Wealth Evaluation for Non-listed Enterprises . . . . . . . . . . . . 113
6.6 Evaluation Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Appendix A: Revisions of Fair Wealth Theory and Method. ..... .... 117
AppendixB:ComparisonBetweenFairWealthandGRI,DJSIaswell
as Relevant Academic References.... .... .... ..... .... 119
References.... .... .... .... ..... .... .... .... .... .... ..... .... 135
Chapter 1
Introduction of Fair Wealth
1.1 FairDevelopmentChronicle
1.1.1 SheshanSymposium(July2013)
OnJuly19and20,2013,theInstituteofSustainableInnovation&Growth(iSIG)
ofFudanUniversityheldthefirst“iSIGSustainableInnovationandGrowthSympo-
sium” in Sheshan of Shanghai, China. The symposium discussed the measures to
achievesustainabledevelopmentandinnovationsinChina,andfinallyreachedthe
consensusesamongsustainabledevelopmentscholars,knownasthe“NineCommon
ThemesofSheshan”.
1.1.2 iSIGEnterpriseSustainableInnovationandGrowth
ShenzhenForum(December2013)
Morethan20successfulprivateentrepreneursandsomegovernmentofficialsgath-
ered at the iSIG Enterprise Sustainable Innovation and Growth Shenzhen Forum
todiscusshowChineseenterprises,especiallyprivateenterprises,shouldgraspthe
global business opportunity of fair development. The forum witnessed the initial
proposalof11dimensionsoffairdevelopmentinChina(nowconsolidatedtonine
dimensions),whichreceivedawarmresponseattheforum.
1.1.3 ThePublicationoftheBubbleTheory(November2013)
TheBubbleTheory:TowardsaFrameworkofEnlightenedneedsandFairDevelop-
ment(ChineseandEnglishedition)startswithenlightenedneedsandsystematically
©FudanUniversityPress2021 1
FairWealthProjectGroup,FairWealthAnnualReport2019,
https://doi.org/10.1007/978-981-15-7789-5_1